New quango to search out investments that have lain dormant for 15 years and give the funds to good causes

Investments that have lain untouched for more than fifteen years could be snapped up and given to good causes after a new quango gets to work.

The new Independent Dormant Assets Commission will encourage financial services companies to reveal dormant holdings in pension pots, funds and bonds, in the same way that banks currently do with cash held in inactive accounts. That scheme has drawn £750million from idle deposits since it began in 2008.

There are no details at present as to what constitutes an 'inactive' investment - but investors will be able to reclaim assets that are wrongfully appropriated at any point if they can prove ownership.

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Minister for Civil Society Rob Wilson said: 'More than a billion pounds of assets, that might otherwise sit gathering dust, will go into funding for charities that make a real difference to people's lives across the country.

'To build an even more caring and compassionate country we need to transform dormant resources and give the funds to those who need it. I have no doubt that Nick is going to present a cast-iron plan to help charities in the years ahead.'

Taxpayer-owned Royal Bank of Scotland faced fresh embarrassment and a possible probe by the City regulator this week after failing to properly inform customers about their dormant bank accounts.

The bank launched an internal inquiry after ‘misinforming’ customers who asked for money locked in inactive accounts to be returned.

Some 4,500 depositors were told their savings were not held by the bank when they were. The accounts affected by the computer-related error have an average of £50 in them.

RBS said affected customers will be reimbursed and is understood to have been proactive in contacting customers after discovering the mistake.

The oversight was apparently due to software related to the mylostaccount.org.uk website, which was set up to identify the owners of inactive bank accounts.

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New quango to search out investments that have lain dormant for 15 years